A recent survey by BofA Global Research showed fund managers now expect the Fed to step in at 3,529 on the S&P 500, compared with expectations of 3,700 in February. Such a drop would constitute a 26% decline from the S&P’s Jan. 3 closing high.
At 10:03 a.m. ET, the Dow Jones Industrial Average was down 415.23 points, the S&P 500 was down 56.93 points, and the Nasdaq Composite was down 104.93 points.
Hopes that the epidemic which started in China would be over in months and that economic activity would quickly return to normal have been shattered this week as the number of international cases spiralled.
India may soon get into the level of outperformance and the sectors that will lead the charts are consumer, FMCG and auto, says Atul Suri of Rare Enterprises, in an interview to CNBC-TV18.
The Dow Jones industrial average traded about 330 points lower. Earlier, the index briefly fell more than 400 points in morning trade to dip below the psychologically key 16,000 level
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.2 percent in early trade from their two-month high touched on Monday, though it was still up 8.6 percent so far this month. Japan's Nikkei fell 0.6 percent.
After suffering their worst quarter in four years amid fears about a China slowdown, US rate uncertainty and emerging market risks, equities have crept up at the start of the fourth quarter.
Greece won conditional agreement to receive a possible USD 95 billion over three years, along with an assurance of talks to bridge a funding gap until a bailout is ready. The deal is contingent on Greece meeting a tight timetable to enact strict reforms.
Stocks rose after the Federal Reserve retained the phrase "considerable time" in its policy statement, and also introduced another word, "patient," as the central bank readies to raise interest rates next year.
Ramin Nakisa, deputy head of asset allocation at UBS Investment Bank and author of 'Invest in fear - a simple guide to trading volatility' sees a big risk mood and volatility across markets but it maybe worrisome if VIX rises above 30.
The volatility recalls the last major period of big market gyrations in the second half of 2011, when the first-ever credit downgrade of the United States and the threat of a debt default kept investors on their toes for several months.
The closely watched monthly jobs report due on Friday is expected show that employers stepped up hiring a bit in February, but there is a greater-than-unusual amount of uncertainty around forecasts given that the weather remained unseasonable.
The catalysts that drove the Dow and the S&P 500 to their worst monthly performances since May 2012 have not gone away. The retreat from emerging markets - and stocks in general - appears to have more room to run as the factors that helped propel the market to record highs in mid-January aren't providing enough support.
For January, the Dow tumbled 5.3 percent and the S&P 500 slid 3.6 percent - their worst monthly percentage declines since May 2012.
Asian traders are on the central bank watch with policy decisions due from the Bank of Japan and the Bank of Thailand.
Initial jobless claims fell by 21,000 to 323,000 and this is much lower than expectations of a reading of 335,000. Preliminary numbers from Markit show that manufacturing in the US rebounded to an eight month high in November, rising to 54.3.
The Dow Jones industrial average gained 88.85 points to close at 15,224.69. The Standard & Poor's 500 Index rose 8.57 points to 1,640.46. The Nasdaq Composite Index added 5.45 points to end at 3,484.83.
The stock market begins the last week of June still rattled by the US Federal Reserve's plans for reducing its stimulus efforts, called quantitative easing, or QE.
The equity market is on nebulous middle ground. The S&P 500 is just 1.5 percent away from its all-time closing high, but other than Friday's rally on the jobs data, it has been stuck in a period of uncertainty.
Standard & Poor's, initially known as the Standard Statistics Company, created its first stock market index in 1923. It consisted of the stocks of 233 companies and was computed weekly.
The US equity markets finished narrowly mixed as investors hesitated to jump in after the recent rally, but the S&P 500 rose to touch a fresh all-time high. The CBOE volatility index ended below 13.
The US equity markets closed sharply lower across the board on Wednesday, following a batch of weaker-than-expected earnings and as commodities resumed their sell-off amid ongoing worries over global growth. The CBOE volatility index shot up 18.3 percent to 16.51.
With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.
CBOE volatility index since July 2008: The CBOE Volatility Index (VIX) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.
The benchmark Standard & Poor's 500 index ended at a five-year high on Friday, lifted by reports showing employers kept up a steady pace of hiring workers and the vast services sector expanded at a brisk rate.